Algorithmic Approach to Options Trading

Majority of the traders lose money whilst trading in options owing to market speculation, emotional trading and lack of risk management. The purpose of this research paper is to introduce an automated way of trading in options in order to tackle these problems. To achieve this, we have adopted some basic option strategies namely Covered Call, Protective Put and Covered Strangle. These strategies have been tested over a period of 5 years (2015-2019) for a set of stocks in the U.S options market.